One hot encoding in pandas5/11/2023 An example would be tracking student grades where Grade 1 > Grade 2 > Grade 3. Ordinal variables have an inherent order which is somehow significant.Examples that fit in this category include gender, postal codes and hair color. That is, we can’t add them together or take the average. But these numbers don’t have a mathematical meaning. For example, we could use 1 for the red color and 2 for blue. Nominal variables are those whose categories do not have a natural order or ranking.Instead, categorical variables can be divided into two subcategories based on the kind of elements they group: Categorical variables | Image by author Similarly, nobody is asking for the average of a list of zip codes that doesn’t make sense. ![]() The sum of two zip codes is not meaningful.
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